Opinion of Keynesian Economics

[Incipimus iterum]

Vote and discuss!

[ag]

Vote and discuss!

Which policy?

Keynes proposed many things in his life, and many more things have been proposed as "Keynesian" since.

[buritobr]

post keynesians > new keynesians > new classics

[The_Doctor]

Vote and discuss!

Which policy?

Keynes proposed many things in his life, and many more things have been proposed as "Keynesian" since.

This.

[Pericles]

Fiscal stimulus of the economy is good. Deficits don't really matter, governments should use deficit spending appropriately in bad economic times to stimulate the economy. Trump's programs however are a scam to benefit the rich and won't help the economy, while Hillary had a big infrastructure spending plan that would stimulate the economy and grow it.

[Tartarus Sauce]

Freedom Policy, though its critics have good points to make as well.

[Murica!]

A useful critic of classical economics, and certainly the "correct" policies for state-capitalist* economic systems.

* Not state-capitalist in the usual sense of the State playing a commanding role in the economy, but rather in that the state and capitalism exist regardless of the specific legal influence on one another.

[I’m not Stu]

Horrible policy. Cut spending when there is a deficit.

[Sprouts Farmers Market ✘]

Horrible policy. Cut spending when there is a deficit.

Wow. Much intelligence. So thoughtful. Gr8 insight.

[Murica!]

Horrible policy. Cut spending when there is a deficit.

How the fyck would that do anything for the economy?

[True Federalist (진정한 연방 주의자)]

Economically sound, but politically horrible because politicians have proved time and time again that they are generally unwilling to set aside the surpluses during the years of good economic times so as to have funds to use during the years of economic famine.  The patriarch Jospeh could be seen as a proto-Keynesian economist, but he's about as mythical as politicians who would actually follow the full set of Keynesian economics.

[Antonio the Sixth]

It was great as long as it lasted, but going back to them won't magically bring us back to the pre-1973 era of shared prosperity. It's time the left comes up with something new.

[Saint Milei]

Worst thing ever

[Shadows]

Every country is the world is Keynesian to some degree. Every major economist in the world today believes in the Keynesian economics. If you don't chance it you don't understand economics.The main bone of contention in stages of crisis & whether to accumulate debt.

If you read economics, you will understand without fiscal intervention & Keynesian economics, (say in Laissez faire) both the supply & demand curves move leftwards to adjust to a new equilibrium which will be at Q* instead of Q on the X-Axis.

And Q* << Q, meaning lower GDP, lower wages, loss of jobs, lower taxes which will again increase debt.

[RFayette]

Freedom policy and of critical importance during deep recessions.  But I think it gets misused to justify expansionary policies when unemployment is already low.

[Shadows]

Every country is the world is Keynesian to some degree. Every major economist in the world today believes in the Keynesian economics. If you don't chance it you don't understand economics.The main bone of contention in stages of crisis & whether to accumulate debt.

If you read economics, you will understand without fiscal intervention & Keynesian economics, (say in Laissez faire) both the supply & demand curves move leftwards to adjust to a new equilibrium which will be at Q* instead of Q on the X-Axis.

And Q* << Q, meaning lower GDP, lower wages, loss of jobs, lower taxes which will again increase debt.

I think you're almost correct but slightly wrong. If the demand curve shifts leftwards, the supply curve will shift rightwards, not leftwards, as workers have to take pay cuts. The price level will fall dramatically, while the quantity sold will stay the same as the effects of the shifts in the two curves cancel. GDP will decrease, of course, and the rest of the stuff you said is correct.

No supply curve shifts leftwards. If supply curve shift rightwards then Q stays the same (GDP quantity similar) & price (P) falls.

Let us say say Demand has fallen 3D to 2D (example). Unemployment in 25% odd at Wages X. When wage falls to X/2 (say), less people in the labor force will be ready work the job at reduced prices. For example - When the wage of a factory is 100$ a month (say) & it is cut to 50$, the number of workers available for the job @ 50 would always be lesser than those available @ 100$.

That is why the supply curve is generally drawn as a straight line with 45 degree to the X axis. As price/wage increases, supply increases, as price/falls decreases, supply decreases.

Ofcourse this is considering the fact that workers will be willing to take a wage cut. In real life, what we see are "sticky wages" & it is difficult to cut wages by say 20% if demand falls by 20% due to union, unwillingness to take wage cuts, employment contracts, legal provisions etc.

[Shadows]

Freedom policy and of critical importance during deep recessions.  But I think it gets misused to justify expansionary policies when unemployment is already low.

That is true. But employment is only 1 factor, overall economic growth is also critical. In terms of recession or low growth, expansionary monetary policy is followed. I also think it is mis-managed as in governments are not cutting debts the way it should even after a decade (& people have to look @ possibly increasing taxes, reducing wasteful military expenditure to reduce debt if you can't cut entitlements).

I also think Expansionary monetary policy should be done considering the state of Infrastructure. China has massive infra but not the people to consume & it is useless (many infra are being without thought & is useless). But if you look @ the condition of the infra in the US, it is pretty average @ best, so countries with poor infra IMO must look at fiscal infra spending as the potential to build long term assets, improve business climate, quality of life is also significant.

I understand the GOP haggling about entitlement reform (I don't support it) but I understand the logic but I see no reason for them to oppose Infra spending. It will pay off much more when compared to the spend given the quality of infra today.

[Kingpoleon]

Freedom policy and of critical importance during deep recessions.  But I think it gets misused to justify expansionary policies when unemployment is already low.

I agree with this, and I think it also needs to be enforced only on the basis of unemployment+state of economy, while being used alongside other theories.

I am a minimalist Keynesian, in short.

[Bunwahaha [still dunno why, but well, so be it]]

I'm quite a follower of Keynes Quotism:

https://www.brainyquote.com/quotes/authors/j/john_maynard_keynes.html

You must be logged in to read this quote.

...and some other good ones not listed here, that one especially, which kinda echoes the preceding one in a still more pleasant way:

You must be logged in to read this quote.

[Devout Centrist]

I am a New Keynesian, my ideas are a synthesis between Monetarism and Old School Keynesianism, with an aversion to austerity during recessions.

[vanguard96]

Worst thing ever

Feudalism and Stalinist state capitalism are much worse.

[The Self]

We are (still) all Keynesians now. Even monetarism is just a flavor of Keynesianism. Its one acceptable capitalist alternative, goldbuggery, is profoundly stupid.

[vanguard96]

We are (still) all Keynesians now. Even monetarism is just a flavor of Keynesianism. Its one acceptable capitalist alternative, goldbuggery, is profoundly stupid.

Why don't you like the gold standard?

[The Self]

We are (still) all Keynesians now. Even monetarism is just a flavor of Keynesianism. Its one acceptable capitalist alternative, goldbuggery, is profoundly stupid.

Why don't you like the gold standard?

Because it's the kind of policy that appeals to downscale libertarian (Paulbot) types, but would absolutely decimate business interests, and consequently the economy, if actually enacted.

What is good for business is almost by definition the only good. And gold isn't.

[vanguard96]

We are (still) all Keynesians now. Even monetarism is just a flavor of Keynesianism. Its one acceptable capitalist alternative, goldbuggery, is profoundly stupid.

Why don't you like the gold standard?

Because it's the kind of policy that appeals to downscale libertarian (Paulbot) types, but would absolutely decimate business interests, and consequently the economy, if actually enacted.

What is good for business is almost by definition the only good. And gold isn't.

You're an advocate of the military-industrial complex and the Fed's destruction of the common person's means of savings, then?